21.10.2024 09:30:01 EEST | Wulff-Yhtiöt Oyj | Interim report (Q1 and Q3)
INTERIM REPORT | OCTOBER 21, 2024 AT 9.30 A.M.
This is a summary of Wulff Group Plc's Interim Report January-September 2024. The complete report is attached to this stock exchange release as a pdf-file. The report is also available at the website www.wulff.fi
JULY-SEPTEMBER 2024 BRIEFLY
- Net sales totalled EUR 26.2 million (21.2), increasing by 23.2%
- EBITDA was EUR 1.4 million (0.8), and comparable EBITDA was EUR 1.4 million (1.1)
- Operating profit (EBIT) was EUR 0.8 million (0.3), and comparable operating profit (EBIT) was EUR 0.8 million (0.6). Operating margin was 3.1% (1.6) and comparable operating margin was 3.1% (3.0)
- Earnings per share (EPS) was EUR 0.04 (0.02) and comparable earnings per share (EPS) was EUR 0.04 (0.06)
- The equity ratio was 41.5% (42.3)
JANUARY-SEPTEMBER 2024 BRIEFLY
- Net sales totalled EUR 74.9 million (70.8), increasing by 5.7%
- EBITDA was EUR 4.0 million (3.5), and comparable EBITDA was EUR 4.2 million (3.8)
- Operating profit (EBIT) was EUR 2.4 million (2.1), and comparable operating profit (EBIT) was EUR 2.5 million (2.4). Operating margin was 3.2% (2.9) and comparable operating margin was 3.4% (3.3)
- Earnings per share (EPS) was EUR 0.22 (0.19) and comparable earnings per share (EPS) was EUR 0.24 (0.23)
FINANCIAL GUIDANCE 2024 (UNCHANGED)
Wulff estimates that net sales will increase, and that the comparable operating profit will remain at a good level in 2024.
The guidance is based on management's assessment of the market and business situation in Finland and Scandinavia. In particular, service businesses are expected to grow from 2023. Key uncertainties affecting the outlook are the development of inflation and interest rates as well as geopolitical crises and tensions.
KEY FIGURES
EUR 1 000 | Q3 2024 | Q3 2023 | Q1-Q3 2024 | Q1-Q3 2023 | Q1-Q4 2023 |
Net sales | 26 158 | 21 231 | 74 911 | 70 848 | 93 782 |
Change in net sales, % | 23.2% | -11.6% | 5.7% | -4.9% | -8.2% |
EBITDA | 1 384 | 805 | 4 006 | 3 529 | 5 110 |
EBITDA margin, % | 5.3% | 3.8% | 5.3% | 5.0% | 5.4% |
Comparable EBITDA | 1 384 | 1 096 | 4 166 | 3 821 | 5 470 |
Comparable EBITDA margin, % | 5.3% | 5.2% | 5.6% | 5.4% | 5.8% |
Operating profit/loss | 812 | 336 | 2 373 | 2 077 | 3 170 |
Operating profit/loss margin, % | 3.1% | 1.6% | 3.2% | 2.9% | 3.4% |
Comparable operating profit/loss | 812 | 628 | 2 534 | 2 369 | 3 530 |
Comparable operating profit/loss margin, % | 3.1% | 3.0% | 3.4% | 3.3% | 3.8% |
Comparable profit/loss before taxes | 435 | 405 | 1 727 | 1 622 | 2 492 |
Comparable profit/loss before taxes margin, % | 1.7% | 1.9% | 2.3% | 2.3% | 2.7% |
Net profit/loss for the period attributable to equity holders of the parent company | 258 | 119 | 1 483 | 1 278 | 2 087 |
Net profit/loss for the period, % | 1.0% | 0.6% | 2.0% | 1.8% | 2.2% |
Comparable net profit/loss for the period attributable to equity | 258 | 410 | 1 643 | 1 569 | 2 446 |
Comparable net profit/loss for the period, % | 1.0% | 1.9% | 2.2% | 2.2% | 2.6% |
Earnings per share, EUR (diluted = non-diluted) | 0.04 | 0.02 | 0.22 | 0.19 | 0.31 |
Comparable earnings per share, EUR (diluted = non-diluted) | 0.04 | 0.06 | 0.24 | 0.23 | 0.36 |
Cash flow from operating activities | 3 038 | 39 | 1 836 | 362 | 4 560 |
Return on equity (ROE), % | 1.8% | 0.6% | 6.3% | 6.2% | 9.9% |
Return on investment (ROI), % | 2.1% | 1.0% | 6.7% | 5.7% | 9.0% |
Equity-to-assets ratio at the end of period, % | 41.5% | 42.3% | 41.5% | 42.3% | 45.5% |
Debt-to-equity ratio at the end of period | 68.3% | 67.6% | 68.3% | 67.6% | 52.5% |
Investments in non-current assets | 358 | 361 | 1 243 | 1 084 | 1 649 |
Personnel on average during the period | 277 | 260 | 269 | 269 | 262 |
Temporary employees on average in person-years of work | 397 | - | 221 | - | - |
WULFF GROUP PLC'S CEO ELINA RAHKONEN
Wulff has had a strong third quarter, even though the market conditions in Finland and Scandinavia have been challenging. Growth and improving profitability have been made possible by our skilled personnel, our partners and our customers who choose us. I am grateful to work with all of you.
July-September operating profit increased from last year in both business segments. The July-September net sales of the Worklife Services Segment increased significantly from last year. The new Wulff Works staff leasing business was profitable in the third quarter. Wulff's accounting services' operating profit increased fivefold from last year thanks to acquisitions and organic growth. The profitability of accounting services is at a good level and the development is stable.
The profitability of the Products for Work Environments Segment also improved in the third quarter. Organizational reforms previously implemented in Finland have made operations more efficient. We continue to improve operational efficiency in our logistics chain.
The positive development of growth and profit gives us good financial starting points and the culture of a solution-oriented sales company, the readiness to succeed in challenging market situations in the future. In particular, we focus on growing the service business and improving profitability in all businesses.
The basis of operating profit growth in both segments is our sustainable business strategy, which includes continuous improvement of the customer experience as well as development of digital and responsible services. Developing the responsibility of our selection of workplace products and solutions is not only important for sustainable development, but also a commercially profitable and increasingly important reason for our customers to choose a partner.
The growth of the working life services we offer is supported by the ongoing change in working life. Work is increasingly being purchased as a flexible service, where the amount of labor and expertise can be acquired according to the current need. Wulff Works is a staff leasing company whose goal is the best employee and customer experience in the industry, and where the workers enjoy working, get employed, and develop according to their own life situation and growth path. In the consolidating accounting and financial management sector, Wulff Accounting, which invests in employee satisfaction and competence development, will continue to offer customers the local and personal service they value in the future as well.
GROUP'S NET SALES AND RESULT PERFORMANCE
In July-September 2024 net sales increased by 23.2% (-11.6) from the previous year and totalled EUR 26.2 million (21.2). In January-September 2024 net sales increased by 5.7% (-4.9) and totalled EUR 74.9 million (70.8).
Worklife Services Segment's net sales increased by 389.4% in July-September and 174.5% in January-September especially due to the new staff leasing business' strong start to the year and the growth of Wulff's accounting services business. The acquisitions of accounting companies implemented in February and June increased the net sales in January-September by EUR 1.2 million.
Products for Work Environments Segment's net sales decreased by 3.8% in July-September and by 3.0% in January-September, excluding the Scandinavian Expertise Sales sold in autumn 2023 from the comparison. Net sales decreased both in Finland and in Scandinavia.
The gross margin amounted to EUR 7.1 million (6.1) being 27.0% (28.6) of net sales in July-September 2024 and EUR 22.1 million (21.3) being 29.4% (30.1) of net sales in January-September 2024. There were no disturbances in the availability of products during the reporting period.
In July-September 2024 employee benefit expenses amounted to EUR 4.0 million (3.5) being 15.2% (16.4) of net sales. In January-September 2024 employee benefit expenses amounted to EUR 12.7 million (12.5) being 16.9% (17.7) of net sales. The decrease in personnel costs relative to net sales during the reporting period is related to the organizational reforms implemented both in early spring and earlier. Wulff's change negotiations during the reporting period resulted in a one-time expense of EUR 0.2 million, which has been removed from the comparable result.
Other operating expenses amounted to EUR 1.8 million (1.8) in the third quarter of 2024 being 6.7% (8.5) of net sales. In January-September other operating expenses amounted to EUR 5.5 million (5.4) being 7.4% (7.6) of net sales. The change in other operating expenses in relation to net sales comes from the growth in the Worklife Services Segment.
In July-September 2024 EBITDA amounted EUR 1.4 million (0.8), or 5.3% (3.8) of net sales and comparable EBITDA amounted to EUR 1.4 million (1.1), or 5.3% (5.2) of net sales. In January-September EBITDA amounted EUR 4.0 million (3.5), or 5.3% (5.0) of net sales and comparable EBITDA amounted to EUR 4.2 million (3.8), or 5.6% (5.4) of net sales.
Operating profit (EBIT) amounted to EUR 0.8 million (0.3), or 3.1% (1.6) of net sales in July-September 2024 and comparable operating profit amounted to EUR 0.8 million (0.6), or 3.1% (3.0) of net sales. Operating profit (EBIT) amounted to EUR 2.4 milllion (2.1), or 3.2% (2.9) of net sales in January-September 2024 and comparable operating profit amounted to EUR 2.5 milllion (2.4), or 3.4% (3.3) of net sales.
In the third quarter financial income and expenses totalled (net) EUR -0.4 million (-0.2). In January-September 2024, the financial income and expenses totalled (net) EUR -0.8 million (-0.7), including interest expenses of EUR -0.8 million (-0.7), and mainly currency-related other financial items (net) totalled EUR -0.1 million (-0.1).
In July-September 2024 the result before taxes was EUR 0.4 million (0.1), and the comparable result before taxes was EUR 0.4 million (0.4). In January-September 2024 the result before taxes was EUR 1.6 million (1.3), and the comparable result before taxes was EUR 1.7 million (1.6).
In the third quarter of 2024 net profit attributable to equity holders of the parent company was EUR 0.3 million (0.1) and comparable net profit was EUR 0.3 million (0.4). The net profit attributable to equity holders of the parent company was EUR 1.5 million (1.3) and comparable net profit was EUR 1.6 million (1.6) in January-September.
Earnings per share (EPS) were EUR 0.04 (0.02) and comparable earnings per share (EPS) were 0.04 (0.06) in the third quarter of 2024. Earnings per share (EPS) were EUR 0.22 (0.19) and comparable earnings per share (EPS) were 0.24 (0.23) in January-September 2024.
SUBSEQUENT EVENTS
The Group has not had any significant subsequent events.
In Espoo on October 21, 2024
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
CEO Elina Rahkonen
tel. +358 40 647 1444
e-mail: elina.rahkonen@wulff.fi
DISTRIBUTION
Nasdaq Helsinki Oy
Key media
www.wulff.fi/en
A better world - one workplace at a time. A perfect working day with worklife services and products for work environment - responsibly with Wulff. Here you can find today's workplace products: e.g. cafe supplies, real estate and cleaning maintenance products, office and IT supplies, ergonomics, first aid, hygiene, protection and safety products, air purification, and innovative products for construction sites. Our selection also includes high-quality Canon printing and document management services as well as financial management services. Our customers also purchase international exhibition services and solutions for remote meetings from us. It is important for us to constantly develop our product range to be more and more sustainable and our customer experience to be the best in the field. Staff leasing is one of our newest service additions. In addition to Finland, Wulff Group operates in Sweden, Norway, and Denmark.
